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match the correct term with the defition D Term Diversification A B Definition A measure of the risk associated with the stock market as a

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D Term Diversification A B Definition A measure of the risk associated with the stock market as a whole Choice Portfolio Spreading investments over multiple assets so as not to have all yor eggs in one basket" C Negative correlation A theory that relates expected return to the Beta values of stocks D Systematic Risk The slope of the SML E Unsystematic Risk Firm-specific risk "T1 Well-Diversified A measure of the effectiveness of two investments in reducing portfolio nisk G Beta The linear relationship between beta and expected return for any given MRP H CAPM A measure of the volatility of an individual investment compared to the market as a whole 1 Market Risk Premium (MRP) Returns of one asset move in the opposite direction to another J Security Market Line (SML) Risk related to the overall economy - this risk is shared by most investments K Reward-to-Risk Ratio Any group of assets owned by the same person or organization L Correlation Coefficient Essentially all unsystematic risk has been eliminated student name main

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